Tag Archives: banking

Making The Most Out Of Your Money

Find out how you can make the most out of your money and avoid credit card and payday loan debt.

Unfortunately, since the financial crash (what credit crunch?!) back in 2008, British people have been feeling the effects. Unfortunately this has resulted in a growing number descending into credit card and payday loan debt as a result of not making the most of the money they do have.

On the face of it – it seems pretty difficult to make the most of your money during this time of “economic uncertainty”. Oddly enough there are things you can do to make your money work harder for you… but what?!

Check Out The Budget Supermarkets

Personally I’ve started doing some of my grocery shopping at the local Lidl or Aldi. Did you know that you can make significant savings by shopping at the budget supermarkets like this? What’s useful about these two stores in particular is the ability to bulk-buy – similar to a wholesaler but for consumers – not businesses. So if you need to do a big shop then you could make significant savings by shopping at a budget supermarket. Don’t get me wrong – I still pop into Tesco or Morrisons for quick buys but if you’re looking to do a big shop then try out Lidl or Aldi and compare what you spend to some of the other retailers out there. You might be surprised.

Invest Your Money Sensibly

There are bank accounts out there that can help you make the most out of your money – through high interest savings accounts and current accounts that will actually give you cashback every month that a set amount is paid in (usually over £1,000 a month).

In addition to this you could consider looking at opening an Interest Savings Account (ISA) to help boost your investments.

Earn More Money

Easier said than done isn’t it?! Ok – to help keep your financial health in top form it’s worth considering an additional job or, if possible, look at taking overtime in an existing job. Boosting your income could make all the difference to your financial situation and help you to meet monthly bills and charges. It could also help to prevent you turning to the likes of payday loans and credit cards to help meet payments and descend into debt.

Sell Sell Sell!

If possible look at selling some of those unwanted items you have lying around the house. These could be unwanted Christmas gifts, an old TV or out-of-date computer. Remember – your trash might be other people’s treasure so it’s worth popping along to your local car-boot sale or auctioning these items on EBay. Worth bearing in mind though that you may find a face-to-face sale at your local car-boot sale to be far more effective – never underestimate face-to-face. Online shopping isn’t always the be-all and end-all!

Tighten Your Purse Strings

Try to spend less – by setting a monthly spending budget for the year (that you stick to!) could help you to control your cash-flow and could mean that you have a little more left over at the end of the month or even the end of the year. Certainly worth considering.

Find out more about bank accounts and find one to suit your needs.

In the most basic terms a bank account is a safe, secure and convenient place to store your money. But let’s face it – a bank account is so much more than just that. Having a bank account is very useful as it makes it easier for employers to make wage payments to you so you don’t have to take cash-in-hand (which, let’s face it, is on it’s way out along with cheques).

Most bank accounts come with a debit card so that you can withdraw money, make deposits, make purchases in shops and online, etc. In addition to this you can even pay bills directly from your bank account, either by setting up direct debits, online banking and writing cheques.

Whether you are looking for a secured loan, payday loan or even a credit card – almost all lenders will need you to have a bank account otherwise they won’t be able to grant you a loan. Unfortunately some people with poor credit scores can find it difficult to get a bank account, however, Creditwindow not only offers standard bank accounts but can also find one for people with poor credit.

What Bank Accounts Are Available?

Let’s take a quick look at some of the bank accounts available to consumers:

A Basic Bank Account

A basic bank account is essentially a regular account that you can have money paid into – such as wages or benefits. You can also pay cash and cheques in yourself as well as pay bills by setting up direct debits. You will also be issued with a cash card to use at ATM or “cash machines”. Many basic bank accounts may also give you a debit card to buy things online or over the counter, however, you will probably not be allowed to take out an overdraft on a plan such as this.

A Bank Current Account

A bank current account is slightly more sophisticated as you will always be granted a debit card so that you can shop online, from restaurants, retail outlets, etc. A cheque book and overdraft facility may also be given to you but the overdraft will be set at an agreed limit and you may face high interest rates if you go over that set limit. However, on the plus side, some current account have an interest rate attached to them so you could earn interest on your money while it’s in your account.

A Bank Savings Account

A bank savings account is simply an account to place money that you don’t want to spend straight-away – i.e. money you plan on saving for whatever reason. All bank savings accounts have an interest rate attached to them so that you can earn on the money that you’ve placed into the account. However, if you’re looking for a savings account that allows you quick access to your money you should note that the interest rate will probably be lower than a standard savings account.

The Costs Of Banking

In the vast majority of cases bank accounts are free to setup and maintain, however, there are some bank accounts that require a monthly administration fee. These bank accounts tend to be premium accounts that offer more services than a standard current account – such as high interest rates, insurance services, overdraft facilities, etc.

In some instances people with poor credit scores may only have a select number of bank account options open to them. Some of these banking options may also charge a small monthly administration fee to offer what a standard bank account would give to customers with good credit.

Have you got a poor credit score and struggling to find a bank account? Check out:

Image: Kittikun Atsawintarangkul / FreeDigitalPhotos.net

Cash For Gold

Cash For Gold - What's The Deal and What Are The Alternatives?

When you’re short of cash, don’t or can’t turn to an overdraft, credit card or payday loan, it can be difficult working out where you can obtain cash in a hurry. Which is why Cash for gold might be worth considering.

Fortunately, with the price of gold on the increase, there are an increasing number of companies looking to buy unwanted gold items, broken jewllery or, in some cases, other precious metals. The nice thing is you don’t have to pay for postage, packaging or any other fees – they simply value your gold and make you a cash offer.

If you decide to take it they can either send you a cheque or deposit money directly into your bank account. However, if you decide not to – they send you your item(s) back – no one loses out. It really is as simple as that.

Recycling Companies

Money For Mobile Phone Handsets

However, there are alternatives to cash for gold, such as mobile phone recycling companies, such as Mazuma Mobile who will give you money for an old or unwanted mobile phone.

All you need to do is enter the details of your mobile phone handset into the website and they will tell you how much money you could get for it. If you are happy with the price you simply post your mobile phone(s) to them, free of charge, and they send you a cheque or deposit money into your bank account.

If you have a number of old mobile handsets to dispose of then this kind of website could be perfect for you.

Money For Old CDs, DVDs and Video Games

Alternatively you could look at the likes of musicMagpie, a company that offers money for your unwanted CDs, DVDs and even video games. All you need to do is scan or enter the barcodes on them into musicMagpie and they will tell you how much you could get for them. If you’re happy with the price you post them, free of charge (the company pays for postage), to them and they send you a cheque. Nice and easy.

So there are a number of companies out there that offer these great deals and they could prove to be a perfect alternative to a payday loan or credit card… except you don’t need to repay anyone any money. Check out some of these great deals for yourself:

Could Portable Bank Account Numbers Be On The Cards?

Numerous bank account customers are failing to realise the significant differences between interest rates, charges and special offers available from different High Street banks.

Unfortunately, when consumers do see better bank account services on offer they are failing to switch accounts to take advantage of better deals. It’s believed that they are reluctant to, due to the problems associated with changing banks.

Have you ever tried to? Switching current accounts can be a real pain as it means notifying service providers of changes to direct debits, changes to standing orders, etc.

According to the Financial Services Consumer Panel bank account holders would be more likely to switch banks for better deals if portable bank account numbers were introduced.

It is believed that fully portable bank account numbers would make it far simpler for UK consumers to move accounts should they wish to. It effectively means that any direct debits or standing orders already setup on an old bank account would automatically be transferred to a new account, thanks to the portable account number, saving you time, money and effort.

Consumer Panel member, Mike Dailly, commented:

“It’s only a matter of time before ‘trouble-free switching’ of current accounts takes-off in the UK, and consumer savvy bank customers start shopping around,

“Greater competition between banks and ‘trouble-free switching’ will drive choice and value for money for consumers.”

Mr Dailly added that “fully portable account numbers would be a great leap in the direction of greater competition as seen in the mobile phone industry.”

The call for portable bank account numbers has come after the Independent Commission on Banking made a very similar recommendation.

In spite of this it should be noted that changing bank accounts is still not that difficult. If you were to change accounts most High Street banks will call your current provider for a list of direct debits and standing orders so that these can be painlessly switched across. Portable account numbers would simply make this process even easier.

If you’re looking for a current account to suit your needs why not take a look at some of the excellent services on offer by comparing bank accounts in our banking section.

Banking Reform On The Cards For Tax Payers

The UK’s economy has felt the reverberating affects of the recession and many of the country’s banks were brought close to collapse.

As a result the Independent Commission on Banking (ICB) has released proposals to change the way in which banks operate. If the UK government gives the go-ahead on these proposals the British people could see major changes in banking security and competitiveness, improving both services and products.

Published earlier this week, the ICB’s report sets out their plans for a new and safer banking system that limits the risk to customers’ money as well as liability to the tax-payer if a bank should fail.

Key changes to the banking system:

1. Retail banking (mortgages, savings, credit cards and current accounts) will be kept seperate from far riskier investment banking (stocks and shares dealing). In addition to this the ICB have suggested:

• Banks are to put a “worst case scenario” plan into place that allows their retail banking to continue servicing the need of customers, even if the investment banking fails.

• Banks will have to set a limitation on the extent to which the retail section can bail out the investment side of the bank should it get into financial difficulty.

2. Banks are to make it a simpler process to switch bank accounts. Including:

• Introducing portable account numbers so that customers will not need to change direct debits and standing orders if they switch accounts.

• A seven day transfer period to be enforced to speed up the process of switching accounts from one bank to another.

3. Lending Criteria for financial products and services, such as personal loans, mortgages and credit cards should be make more flexible.

4. Larger banks such as Lloyds Banking Group should be made to sell off more retail branches as they currently provide up to 30% of all british current accounts. The ICB feel that this financial burden should be reduced.

It’s believed that, once the proposals have been scrutinised, the ICB will present their suggestions for banking reform to the British Government.

The final decision will lie with the Government to decide whether the benefits outweigh the risks to the tax-payers and whether further rules and restrictions will push the large banks off of British soil.

In spite of this it should be noted that the ICB began this investigation at the insistence of the Chancellor. This suggests that, if not all, then many of their recommendations are likely to be put in place.

Check out our great range of bank accounts to find the right one to suit your needs.

British Gambling On The Increase, potentially leading to growing personal debt

With the failing British economy, the number of people turning to gambling has seen a major increase over the last year or so.

A recent report by the Gambling Commission has revealed that almost 75% of the adult population of the UK has partaken in some form of gambling in the past year.

The survey revealed that:

59% of adults bought National Lottery Tickets over 2010
14% of adults used the internet to gamble over 2010
81% of adults gambled “in person”

Most worryingly, the British Gambling Prevalence report, showed that the number of “problem gamblers” stands at around 451,000. These people could be putting themselves at risk of falling into debt through overspending and turning to credit cards, payday loans and overdrafts to feed their gambling problem.

The Chairman of the Responsible Gambling Strategy Board’s research panel, Professor David Miers, commented:

“Any rate of problem gambling and risk of exposure is both a political and public health concern, and highlights the continuing need for targeted research, education, prevention and treatment.”

Professor Miers went on to add that the national survey of gambling “is welcome because it will be a useful tool in understanding who gambles and how they gamble.” He suggested that the survey will be useful in helping to consider new ways of preventing consumers being affected by gambling problems, including the risk of debt and personal insolvency.

If you or your family have become affected by mounting debt then it’s worth checking out our range of debt management guides and debt consolidation programmes designed to help manage your debt effectively.

For more information about gambling related problems please visit http://www.rgsb.org.uk/ or http://www.gamcare.org.uk/ for help and guidance.

Image: dan / FreeDigitalPhotos.net

Cheque usage drops in favour of debit cards

More and more people are turning to cash or their debit and credit cards over cheques, which are due to be phased out over the next 8 years or so, with a target date of October 2018.

The report suggested that cheque usage dropped by well over £21 billion, which is down by a tenth over the second quarter of 2010, compared to the same period in the previous year, as more people switch to faster and more convenient methods. In spite of this, credit card spending wasn’t as strong as expected over the second quarter, which rose by around 3.9%, which is barely ahead of the inflation rate.

With bank transfers becoming instant and chip and pin debit cards making it even easier for consumers and businesses to access funds quickly and with a minimum of fuss this report suggests that a key change to the way people pay for goods and services.

Sandra Quinn, Director of Communications for the Payments Council, commented:

“Cheque usage is shrinking dramatically, while credit cards hold less appeal for consumers and businesses.

“We use cash less where there is an easy alternative, but we’re years away from cash falling out of fashion. Debit cards are taking over our daily purchases, while Faster Payments are fast becoming how we transfer our money electronically.”

In spite of this, Ms Quinn added that the overall payment figures suggest a “distinct lack of energy in the UK economy.” She went on to say that although economic recovery is underway, the total values of payments are not indicative of a strong growth.

Five pound notes to be added to bank ATMs

A fragile economy has brought about changes to the way in which we view and handle our personal finances. With personal credit card and loan debt still rife throughout the UK many people are continuing to be frugal with their spending.

It appears that the Bank of England has come to realise that and all banks and building societies are now stocking their ATMs with £5 notes.

The current scarcity of £5 notes means that they change hands many more times than other notes before returning for sorting. This coupled with the increasing wear and tear, in contrast to other notes, makes them less suitable for use in ATMS.

Consequently the Bank of England is to ensure that higher quality £5 notes are going to be made available to banks and building societies for use in their ATMs, as part of it’s reforms to the cash note circulation system.

ATM operator, Link, has stated that the higher quality £5 note is a pre-requisite to stocking bank ATMs with five pound notes and also means that better quality notes will be entering public circulation.

Consumer spending affected by high inflation

With many consumer’s finance under pressure with rises in the cost of living, and personal loans and credit proving difficult to come by, research has recently suggested that over 30% of people have reported a deterioration in their finances.

A study by YouGov and Markit has reported that people’s worsening financial situation has been caused by a drop in income from employment, coupled with a significant hike in the prices of goods and services.

With the public sector under pressure with pending cuts, the fall in job security has severely impacted consumer confidence. In addition to this the drop in house prices have many people concerned about the economic situation in the UK.

Additional research by Asda showed that, on average, British households’ income dropped by £5 per week over the past year. It’s believed that the fall in income is due to the fact that pay rises failed to keep up with inflation. On average, earnings rose at an annual rate of 1.6% in the second quarter, while inflation sat at 3.1%.

With inflation expected to sit above 2% over the next year or so, family spending power is likely to drop further over 2011, impacting on the availability of credit cards, personal loans and mortgages.

Markit Economist, Tim Moore, commented:

“Household finances continue to suffer from a backdrop of squeezed disposable income, stubbornly high inflation and ongoing public sector spending cuts.”

Borrowing rates see marked improvements

Hopes of a smaller increase in credit borrowed than first feared in 2010 has been fuelled by a slight improvement in Britain’s dreadful public finances over July.

The Office for National Statistics (ONS) indicated that the UK sank further into the red over July. Net borrowing increased by £3.8 billion over the month, however, the ONS also indicated that this is an improvement compared to the same time last year when borrowing saw an increase of £6.1 billion.

The Office for Budget Responsibility (OBR) had originally forecasted borrowing to hit £149 billion for the full year. Vicky Redwood, Economist for Capital Economics UK, commented:

“Should borrowing continue along the same path, it would undershoot the OBR’s full-year forecast by around £3 billion.This still leaves borrowing at extremely high levels and does not reduce the need for a massive fiscal tightening over the coming years.”

The amount of credit borrowed is still raising concerns amongst a number of experts. Many economists believe that the Government’s measures, announced in the Budget earlier this year, to help bring the deficit down is the right move to help the UK’s economy to recover.

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